Controversial Pipeline to Turkey Is Contributing Factor

LONDON—Oil explorer Genel Energy PLC, headed by ex-BP PLC chief Tony Hayward, said Thursday its oil production in Kurdistan surged last month, in part thanks to a controversial export pipeline to Turkey.

The pipeline has allowed the Kurdistan Regional Government in the semiautonomous region of northern Iraq to increase oil exports via Turkey. Although the central government in Baghdad disputes the Kurdish government's right to sell the oil directly, proceeds from the first cargo, sold at international prices, have been paid...